Levi Strauss & Co.

San Francisco, CA
March 2009
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Why a Product-Lifecycle Approach?

In 2006, we had several programs in place to address environmental impacts associated with the production of our products and the operation of our facilities
Environmental compliance programs Supplier Code of Conduct program Global Effluent Guideline program Levis eco products (e.g., using organic cotton)

We needed a credible, science-based method for measuring the full environmental impact of our products so that we would be able to identify a vision and set of priorities for our environmental work going forward We commissioned a lifecycle assessment (LCA) of two of our core products, which yielded some surprising results By taking a product-lifecycle approach to our work, we were able to develop a set of strategies to address the greatest impacts of our business on the environment Our product-lifecycle approach addresses both environmental sustainability and the sustainability of our business
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What Is a Product-Lifecycle Assessment?

Quantitative method to evaluate the environmental impact of products using:
Lifecycle perspective (system analysis) e.g., from the cultivation of cotton to the end of the products useful life (cradle to grave) Mass and energy balance (input/output inventory) Direct Data inputs and outputs associated directly with product Indirect Data inputs and outputs used to make the direct inputs (often using extensive industry-average data sets) Impact assessment categories To translate the input and output data to the environmental impacts of the system

Typically, does not include:

Social impacts Economic impacts

Definition of LCA from ISO 14040* Series:

the compilation and evaluation of the inputs, outputs and the potential environmental impacts of a product system throughout its lifecycle

*Details the requirements for conducting and administering a Life Cycle Assessment (LCA)

A Credible Methodology
Forty-year history
1969: Glass bottle recycling vs. one-use PET bottles 1970s: Energy crisis prompted energy-efficiency studies 19972001, 2006: International Standards Organization (ISO) 14040 series

Consensus on LCA practice

University graduate programs LCA professional certification (LCACP) LCA to be integrated into LEED program for certification of green buildings United Nations Environmental Program (UNEP) Lifecycle Initiative European Union Integrated Product Policy (IPP) National Institute of Standards and Technology (NIST) using LCA for preferable purchasing by U.S. federal government
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Our Project Scope

Selected high-volume product:
Levis 501 jean, medium stonewash Produced for the U.S. market during the 2006 production year

Studied the full lifecycle - cradle to grave Data compiled from

LS&CO. suppliers GaBi 4 software datasets (used by LCA professionals, academics, government and other objective parties)

Followed ISO 14040 series standards for results intended for internal use only Additional review (Phase 2) enables LS&CO. to share select data publicly and refer to LCA findings in conversations around our sustainability story and programs Conducted by PE Americas, Boston, MA
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The LCA Results of the Studied Levis 501 Jean

Shrink to fit fabric 0193 Finish Medium stone wash U.S. Market, 2006 production year

Levis 501 Jean System Boundary

Studied product produced for U.S. market during the 2006 production year using 0193 medium stone wash finish
Cotton
(West Texas)
Truck
Tru ck

Fabric
(Mexico)
Truck /Ship

Truck

Garment Cut & Sew (Mexico)

(Dominican Republic)
Truck

Truck

Garment Finish
(Mexico)

Cotton
(Mississippi Delta)

Truck

Fabric
(North Carolina)

Garment Cut

Garment Sew (Haiti)

Truck

Garment Finish
(Dominican Republic)

Cotton
(Brazil)

Truck

Fabric
(Brazil)

Truck/Ship

Garment Cut Sew/Finish (Egypt)

Truck/Ship

Truck/Ship

Truck

Retail (U.S.) Direct Retail (U.S.) Large Retailer

Truck/Air Truck

Hebron, KY CSC Canton, MS CSC Henderson, NV CSC

Truck

Pool Point
(McDonough, GA)

Retail (KY) Online Retail

Pool Point

Disposal (U.S.) Landfill Use (U.S.) Customer

Truck

Reuse (U.S.) Customer

Disposal (U.S.) Incineration

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Levis 501 Jeans Climate Change

Cradle-to-Grave Climate Change, % by Phase
1% 5% 21%

Cradle-to-Grave Climate Change, Amount by Phase

20 18 16

18.6

Kg CO2e

14 12 10 8 6

6.6 3.0 0.5 1.7

58% 6%
Use End of Life Cotton Fabric Cut/Sew/Finish

9%

4 2 0

2.1

En

Co t

of

Logistics/Retail

For the studied Levis 501 jeans (cradle to grave), the climate-change impact was highest at the consumer-use phase (58%)
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Levis 501 Jeans Energy Use

Cradle-to-Grave Energy Use, % by Phase
4% 21%
200

Cradle-to-Grave Energy Use (MJ), Amount by Phase

250 226.6

MJ

150 84.9 100 40.8

58% 7%
Use Cotton Fabric Cut/Sew/Finish

10%

50 0.4 0

29.8

17.7

En

Co t

of

Logistics/Retail

For the studied Levis 501 jeans (cradle to grave), the energy-use impact was highest at the consumer-use phase (58%)
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Levis 501 Jeans Water Consumption

Cradle-to-Grave Water Consumption, % by Phase Cradle-to-Grave Water Consumption, Amount by Phase
1800 1600

1575.2

1704.0

45%

1400

Liters

1200 1000 800 600 400

1% 3% 2%
Use Cotton Fabric Cut/Sew/Finish Logistics/Retail

49%

200 0

0.4

72.1 110.8

18.1

For the studied Levis 501 jeans (cradle to grave), water consumption was highest at the cotton-production and consumer-use phases (49% and 45% respectively)
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Product-Lifecycle Impact of Studied Levis 501 Jean

is equivalent to: 78 miles driven by the average auto in the United States
32.3 kg of CO2

The carbon sequestered by six trees per year (based on EPA representative sequestration rates of tons of carbon per acre per year) Running a garden hose for 106 minutes

3480.5 liters of water

53 showers (based on 7 minute showers) 575 flushes of a 3.78 liter/flush low flow toilet Watching TV on a plasma screen for 318 hours

400.1 MJ of Energy

Powering a computer for 556 hours, which is equivalent to 70 work days (based on 8 hours of computer use per day)

Data from LS&CO.s Life Cycle Assessment on Levis 501 jean for U.S. Market, 2006 production year

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Consumer Care Reducing Climate Change Impact

How water temperature and the type of machine(s) you use can make a difference
20 18 16
Kg CO2e

18.6

14.2 13.7 12.5

14 12 10 8 6 4 2 0

6.7

1.9

2.7 1.1

Cold Water, Warm Water, Cold Water, Warm Water, Cold Water, Warm Water, Cold Water, Warm Water, Line Dry Line Dry Machine Dry Machine Dry Line Dry Line Dry Machine Dry Machine Dry Top-Loaded Side-Loaded
Washer information derived from the following sources: The Federal Trade Commission Appliance Energy Data: http://www.ftc.gov/bcp/conline/edcams/eande/appliances/clwasher.htm Bole, Richard. Life-Cycle Optimization of Residential Clothes Washer Replacement, Center for Sustainable Systems, University of Michigan, April 21, 2006. Available at: http://css.snre.umich.edu/css_doc/CSS06-03.pdf (Appendix C of the University of Michigan report contains detailed washer energy efficiency data, from the Association of Home Appliance Manufacturers)

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Consumer Care Reducing Energy Use Impact

How water temperature and the type of machine(s) you use can make a difference
350

295.4
300 250
MJ

220.5

226.6 201.2

200 150 100

123.0

48.1
50

60.3 34.8

0
Cold Water, Warm Water, Cold Water, Warm Water, Cold Water, Warm Water, Cold Water, Warm Water, Line Dry Line Dry Machine Dry Machine Dry Line Dry Line Dry Machine Dry Machine Dry Top-Loaded Side-Loaded

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Consumer Care Reducing Water Consumption

How water temperature and the type of machine(s) you use can make a difference
1800 1600 1471.0 1400
Liters

1475.1

1571.1

1575.2

1200 1000 800 540.0 600 400 200 0

Cold Water, Warm Water, Cold Water, Warm Water, Cold Water, Warm Water, Cold Water, Warm Water, Line Dry Line Dry Machine Dry Machine Dry Line Dry Line Dry Machine Dry Machine Dry Top-Loaded Side-Loaded

636.6 541.4

638

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Number of Washes Climate Change Impact

Denim is a hearty fabric. We dont need to wash our jeans after every wear.

52 Washes Consumers can decrease the climate change impact by about 32 percent by decreasing the number of times they wash their jeans to once every two weeks from once per week 24 Washes Consumers can decrease the climate change impact by about 48 percent by decreasing the number of times they wash their jeans to once per month from once per week
35 30 25
Kg CO2e

Comparison of Climate Change Impact, by Number of Washes

32.3

21.9 16.9

20 15 10 5 0

104 52 24 Cradle-to-Grave Totals (Number of Washes)

*Basedontoploaded/warmwater/machinedry *LCAassumed104washings(onceperweekfortwoyears) 16

Number of Washes Energy Use Impact

Denim is a hearty fabric. We dont need to wash our jeans after every wear.

52 Washes Consumers can decrease the amount of energy used when caring for their jeans by about 20 percent by decreasing the number of times they wash their jeans to once every two weeks from once per week 24 Washes Consumers can decrease the amount of energy used when caring for their jeans by about 40 percent by decreasing the number of times they wash their jeans to once per month from once per week
450 400 350 300 400.1

Comparison of Energy Use, by Number of Washes

321.2

241.6
MJ

250 200 150 100 50 0

104 52 24 Cradle-to-Grave Totals (Number of Washes)

*Basedontoploaded/warmwater/machinedry *LCAassumed104washings(onceperweekfortwoyears) 17

Number of Washes Water Consumption

Denim is a hearty fabric. We dont need to wash our jeans after every wear.

52 Washes Consumers can decrease water consumption by about 23 percent (799.2 liters) by decreasing the number of times they wash their jeans to once every two weeks from once per week 24 Washes Consumers can decrease water consumption by about 35 percent (1,223.3 liters) by decreasing the number of times they wash their jeans to once per month from once per week
4000 3500 3000 2500
Liters

Comparison of Water Consumption, by Number of Washes

3480.5

2681.3 2257.3

2000 1500 1000 500 0

104 52 24 Cradle-to-Grave Totals (Number of Washes)

*Basedontoploaded/warmwater/machinedry *LCAassumed104washings(onceperweekfortwoyears) 18

What We Learned from Our Product Lifecycle Assessment

When we look at the full product lifecycle, the majority of environmental impacts occur in lifecycle phases outside of our direct control In order for us to decrease our overall environmental impact, we need to continue our efforts within our own sphere of influence in addition to focusing on:
Cotton production: the cultivation of our most important raw material Consumer engagement: we are a consumer-facing company, in constant conversation with the consumer about style and quality. We will engage and educate our consumers on the environmental impact of their fashion choices and the responsible care of their washable garments

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Examples of Our Product Lifecycle Approach in Action

Engaging consumers:
Levi Strauss & Co. partnered with the Alliance to Save Energy and Proctor & Gamble, makers of Tide Coldwater, to co-promote our Signature by Levi Strauss & Co. jeans in Wal-mart stores, encouraging consumers to save energy and money by washing their jeans in cold water Product care labels: The Levis brand is in the process of changing all care labels on the brands products, instructing consumers to wash in cold water and tumble dry medium. The new instructions will allow consumers to reduce their own environmental/climate change impact and save money on their utility bills

Reducing product packaging Incorporating resource-efficiency factors in product design and manufacturing, including finishing technologies that allow us to reduce our water and energy consumption Addressing cotton sustainability through participation in projects such as the Better Cotton Initiative

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Benefits of Our Product Lifecycle Assessment

Helps us focus on the most significant environmental impacts as we develop and evaluate sustainability programs and policies Aids discussions with product designers, product managers, merchandisers and other employees on the concept of designing for sustainability Supports engagement with external stakeholders as we describe our environmental priorities and goals

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Levi Strauss & Co.

San Francisco, CA
March 2009
22

Appendix

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Dockers Original Khaki Climate Change

Cradle-to-Grave Climate Change, % by Phase
1% 3% 28%

Cradle-to-Grave Climate Change, Amount by Phase

16 14

14.6

Kg CO2e

12 10

6.8
8 6

59% 2% 7%
Use End of Life Cotton Fabric Cut/Sew/Finish Logistics/Retail

4 2 0

1.7 0.3 0.6 0.5

For the studied Dockers Original Khaki pant (cradle to grave), we found the climate-change impact was highest at the consumer-use phase (59%)
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Dockers Original Khaki Energy Use

Cradle-to-Grave Energy Use, % by Phase Cradle-to-Grave Energy Use (MJ), Amount by Phase
250 231.6

2%
200

26%

MJ

150 96.9 100

63%
50

24.6 0.2 6.7 7.7

2% 7%
Use Cotton Fabric Cut/Sew/Finish Logistics/Retail

0
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For the studied Dockers Original Khaki pant (cradle to grave), the energy-use impact was highest at the consumer-use phase (63%)
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Dockers Original Khaki Water Consumption

Cradle-to-Grave Water Consumption, % by Phase
62%

Cradle-to-Grave Water Consumption, Amount by Phase

800 700 600

738.2

Liters

500 400 300 200

389.0

1% 1% 4%
Use Cotton Fabric

53.6 0.2

100

16.1

16.5

32%
Cut/Sew/Finish Logistics/Retail

0
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For the studied Dockers Original Khaki pant (cradle to grave), water consumption was highest at the consumer-use and cotton-production phases (62% and 32% respectively)
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Selected Assessment Methodologies

Impact Category
Energy Use

Indicator
Primary energy demand Global Warming Potential GWP) Eutrophication Potential

Description
Measure of the total amount of primary energy extracted from the earth Measure of greenhouse gas emissions, such as CO2 and methane Measure of emissions that cause eutrophying effects to the environment Measure of emissions that cause acidifying effects to the environment. Measure of emissions of precursors that contribute to low level smog Measure of the potential toxicity of materials based on the chemical condition, original emission place and its fate. Measure of the water consumed. Sources include surface and ground water MJ

Unit

Reference
An operational guide to the ISOstandards (Guinee et al.) Centre fro Milieukunde (CML), Leiden 2001 IPCC. Climate Change 2001: The Scientific Basis. Cambridge, UK: Cambridge University Press, 2001. Bare et al., TRACI: the Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts JIE, MIT Press, 2002. Bare et al., TRACI: the Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts JIE, MIT Press, 2002. Bare et al., TRACI: the Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts JIE, MIT Press, 2002. Bare et al., TRACI: the Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts JIE, MIT Press, 2002.

Climate Change Eutrophication

Kg CO2 equivalent

Kg Nitrogen equivalent

Acidification

Acidificaiton Potential

Kg H+ equivalent

Smog

Photo chemical Oxidant Potential Human Toxicity Potential; Ecotoxicity Potential Water take

NOx equivalent

Toxicity

Kg Benzene equivalent, PM2.5 equivalent; Toluene equivalent; 2,4-D equivalent Kg water

Water

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Selected Impact Categories for Communication

Energy Use Climate Change Water Uptake

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